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 Series ARSP/10 Set ~ 10
Roll No. Q.P Code 15/10/10
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 06 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

Business Studies

Time allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answers should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 words.

5. Answers to the questions carrying 4 marks may be about 150 words.

6. Answers to the questions carrying 6 marks may be about 200 words.

7. Attempt all parts of the questions together.

1. Ramesh has recently joined AMV Limited, a company manufacturing refrigerator. He found that his department [1]
was under-staffed and other departments were not cooperating with his department for smooth functioning of the
organisation. Therefore, he ensured that his department has the required number of employees and its
cooperation with other departments is improved.
Identify the level at which Ramesh was working.

a) Top Level b) Middle Level

c) Lower Level d) Floor level

2. Adapting to a change in consumer preference towards online shopping, Fast-Service started a grocery delivery [1]
app. It is a platform that ensures 10-minute deliveries of groceries. Because of this service, Fast-Service earned
huge profit within a year. It planned to expand its operations and decided to raise funds by directly issuing its
securities to investors.
The market through which Fast-Service has decided to raise funds for its expansion is:

a) Money market b) Both Primary and Secondary markets

c) Secondary market d) Primary market

3. Following a pre-decided plan, when circumstances have changed, may not turn out to be in the [1]
organisations interest. Identify the limitation of planning highlighted above.

a) Planning reduces creativity b) Planning may not work in a dynamic

environment

c) Planning leads to rigidity d) Planning does not guarantee success

4. Which of the following is NOT a factor affecting capital structure of a company? [1]

a) Interest Coverage Ratio b) Cash Flow Position

 c) Growth Opportunities d) Cost of Debt
5. The main basis of setting standards is ________. [1]

a) Quantity b) Quality

c) Time d) All of these

6. Achievers ltd strictly follows this principle of management at all levels. Identify this principle from the [1]
following picture.

a) Authority and responsibility b) Unity of command

c) Scalar chain d) Order

7. Educating the investor is the ________ function of SEBI. [1]

a) Both protective and regulatory b) Regulatory

c) Protective d) Developmental
8. Nisha was working as a Human Resources Manager in a famous consultancy firm, KLI Global Services. Her job [1]
included preparing job descriptions, recruitment, developing compensation and incentive plans and facilitating
employees learning. They had entered into alliances with institutes to ensure continuous learning of their
employees. With the jobs becoming more and more complex, KLI Global Services invested large amount of
money in making the employees learn the skills necessary to complete the jobs. Identify the concept adopted by
KLI Global Services.

a) Induction b) Recuritment

c) Training d) Selection
9. Which of the following statement is false? [1]
a. The extent of retained earnings also influences the financing decision of the firm.
b. Dividend division should be taken keeping in view the overall objective of maximising shareholders wealth.
c. Other things remaining the same, a company having stable earnings is in a better position to declare higher
dividends.
d. Higher dividends may be declared if tax rates are relatively higher.

a) option (c) b) option (d)

c) option (b) d) option (a)

10. Assertion (A): Assignment of Duties is the third step in the process of Organising. [1]
Reason (R): Duties are assigned to the employees by giving them a document called Job Description.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

11. Which of the following is a development function of Securities and Exchange Board of India? [1]

a) Undertaking steps for investor protection b) Prohibition of fraudulent and unfair trade
 practices

c) Training of intermediaries of the securities d) Promotion of fair practices and code of

market conduct in the securities market
12. Abandoning a project after heavy investment is made is quite costly in terms of waste of funds. Therefore, these [1]
decisions should be taken only after carefully evaluating each detail or else the adverse financial consequences
may be very heavy.
The financial decision highlighted above is ________.

a) Dividend decision b) Capital budgeting decision

c) Working capital decision d) Financing decision

13. Statement I: Restrictive trade practice is a trade practice for the purpose of promoting sale, use or supply of any [1]
goods or service falsely represents its quality, standard, quantity, composition, style or model.
Statement II: Unfair trade practice is a trade practice which manipulates price or affect the flow of supplies in
the market relating to goods and services in such a manner that an unjustified cost is imposed on the consumer.

a) Both the Statements I and II are correct. b) Both the Statements I and II are not correct.

c) Statement II is correct and Statement I is not d) Statement I is correct and Statement II is not
correct. correct.
14. Aman Ayurvedic Ltd. is an established Indian company manufacturing organic consumer goods like toothpastes [1]
and shampoos. It has planned to increase its market share from 30% to 40% in the current financial year. With
the expanding market of organic products, other companies in the consumer goods industry have also launched
these products with organic components. The competition in the market has increased and it was found that the
sales of Aman Ayurvedic Ltd. came down and its market share was reduced to 23%. Identify the limitation of
planning highlighted in the above case:

a) Planning reduces overlapping and wasteful b) Planning may not work in dynamic
activities. environment.

c) Planning involves huge costs. d) Planning is time consuming.

15. ________ refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial [1]
charges like interest.

a) Capital structure b) Earning per share

c) Trading on equity d) Return on investment

16. Statement I: If the demand of a product is inelastic, the firm is in a position to fix higher prices. [1]
Statement II: In case the degree of competition is high, the firm is in a position to set high prices.

a) Both the statements are correct. b) Statement I is correct and Statement II is

wrong.

c) Statement II is correct and Statement I is d) Both the statements are wrong.

wrong.
17. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence [1]
while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners
compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the
 restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others.
Identify the type of plan being described in the above lines.

a) Procedure b) Method

c) Programme d) Strategy
18. Match the concept of management in Column I with their respective definition in Column II: [1]

(a) Effectiveness (i) Doing the task correctly and with minimum cost.

(b) Efficiency (ii) Finishing the given task on time.

(c) Process (iii) The primary functions or activities that management performs to get things done.

a) (a) - (i), (b) - (ii), (c) - (iii) b) (a) - (ii), (b) - (i), (c) - (iii)

c) (a) - (iii), (b) - (ii), (c) - (i) d) (a) - (i), (b) - (iii), (c) - (ii)
19. Match the TERMS in Column I with their correct MEANING in Column II [1]

Column I Column II

(i) Comparing cash profits with the total cash required for the service of the debt
(a) Floatation Costs
and the preference share capital.

(b) ICR (Interest Coverage (ii) Extent to which earnings before interest and taxes of a company covers the
Ratio) interest obligation.

(c) DSCR (Debt Service

(iii) Cost involved in the process of raising resources.
Coverage Ratio)

a) (a) - (iii), (b) - (ii), (c) - (i) b) (a) - (i), (b) - (iii), (c) - (ii)

c) (a) - (iii), (b) - (i), (c) - (ii) d) (a) - (ii), (b) - (i), (c) - (iii)
20. Keya Ltd. is a large organisation manufacturing a popular brand of desi ghee and supplying it to various states of [1]
India. They manufacture 10,000 litres of desi ghee every day and pack in cartons of 250 ml, 500 ml and 1 litre
sizes. The production manager ensures that one out of every ten cartons of each size is checked for quality
control everyday.
The step of the controlling process discussed in the above para is:

a) Setting performance standards b) Analysing deviations

c) Comparison of actual performance with d) Measurement of actual performance

standards
21. Explain the features of management that do not establish it as a profession. [3]
22. The performance of an organisation depends upon how a supervisor instructs and guides the subordinates at [3]
operative level. Explain.
OR
Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate
them to contribute towards achieving organisational objectives. In the light of this statement, explain any two styles
of leadership.
23. Indian equity markets are going through a phase of boom. There is a huge growth potential for innovative [3]
technologies. This has resulted in lots of new ventures vying for a market share and old enterprises trying to
 keep up with the pace with which changes are taking place in the economy. This technological innovation has
helped even smaller businesses to compete on a global scale.
Identify and explain the three factors highlighted above which affect the working capital requirements of such
enterprises.
24. State any three directions which can be issued by the consumer court to the opposite party if it is satisfied about [3]
the genuineness of the complaint.
OR
State any three responsibilities that a consumer should keep in mind while purchasing using and consuming goods
and services.
25. Give the meaning of 'objectives’ and ’budget' as types of plans. [4]
OR
Explain any three limitations of planning function of management.
26. Explain the first two steps in the process of controlling. [4]
OR
Explain the limitations of Controlling.
27. Explain any five points of significance of Principles of Management. [4]
28. GDFS Limited are the manufacturers of consumer goods. The demand for their products was continuously [4]
declining after the outbreak of COVID-19. In spite of fall in demand, the company assured its employees that no
worker will be retrenched from the job. Name the category of incentive and the incentive offered to the
employees. Also explain any two more incentives of the same category.
29. Differentiate between Capital Market and Money Market on the basis of any four points. [4]
30. State any four reliefs available to the consumers if the consumer court is satisfied about the genuineness of the [4]
complaint.
31. Mr Naresh recently completed his MBA from one of the Indian Institutes of Management in Human Resource [6]
Management. He has been appointed as Human Resource Manager in a Truck, Manufacturing Company. The
company has 1,500 employees and has an expansion plan in hand that may require additional 500 persons for
various types of jobs. Mr Naresh has been given the complete charge of the company’s Human Resource
Department.
List out the specialised activities that Mr Naresh is supposed to perform as the Human Resource Manager of the
company.
OR
Explain the steps in the staffing process of management after Placement and Orientation.
32. After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner [6]
Ecom Creations Ltd. He launched a new product in e-leaming for senior secondary school students in the
commerce stream which already had an established market in the UK and the USA but not in India. His business
started flourishing in India. As a result, more Indian companies entered the market with other subjects also.
Identify and quote the lines from the above paragraph which highlight the significance of understanding the
business environment.
OR
With rapid advancements in the field of replacing manual work with machines, a Robot named Sujan has been
invented and developed and is likely to get the citizenship of the country of its origin.
It has led to a stage where machines are being used in place of human beings. Sujan is doing all types of work
whether routine or hazardous and even answering the queries of people. However, this issue has to be carefully
 looked into keeping in mind the consumer attitude towards product innovations, problem of unemployment and its
impact on the quality of life. Through the orders and decisions of various commissions and agencies at Centre, State
or Local level the Indian Government is playing a very significant role in balancing the use of human and machine
power. Various dimensions of business environment are being discussed in the above para.
By quoting the lines from the above identify and explain any three dimensions.
33. What is meant by “Functional Structure” of an organisation? State any five advantages of this form of [6]
organizational structure.
34. Radhika was a student of Business Studies of class XII. Her father was a farmer who grew different varieties of [6]
rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a
pilot-project on rice cultivation.
As a project-work in Business Studies, she decided to study the feasibility of marketing good quality rice at a
reasonable price. Her father suggested her to use the internet to gather customers’ views and opinions. She found
that there was a huge demand for packaged organic rice.
She knew that there were no pre-determined specifications in case of rice because of which it would be difficult
to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of
‘Malabari Organic Rice’ and classified it into three different varieties namely—popular, classic and supreme,
based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph.